|3 Months Ended|
May 02, 2020
Income tax expense reflects the federal statutory tax rate and the weighted average state statutory tax rate for the states in which the Company operates stores. Income tax benefit of $24,247 for the 13 weeks ended May 2, 2020 represents an effective tax rate of 23.6%, compared to $47,365 of tax expense representing an effective tax rate of 19.8% for the 13 weeks ended May 4, 2019. The higher effective tax rate is due to a reduction of tax deductible stock option expense in first quarter of fiscal 2020.
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The Company is continuing to evaluate the impact the CARES act will have on the Company’s financials and required disclosures.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef